Although I really enjoyed the hotel we just stayed in and I wouldn't really even consider it a "hotel" I would rather stay in a Bed and Breakfast. It's more personal and they ad the special little touches that the hotel's don't offer. The breakfast is also much better.
Really it depends on the establishment you're staying with but a good B&B beats out a continental breakfast any day of the week. I'm a very friendly person who doesn't mind conversing with complete strangers which is another reason I love B&B's; you get to meet some fascinating people. We have.